RT.com
23 Jan 2022, 05:42 GMT+10
Cryptocurrency's price plunged below $35,000 for the first time since July
The world's biggest digital asset, Bitcoin, fell as low as $34,042.78 on Saturday, marking a drop of 7.2%. It has recovered most of those losses, and was trading at $35,445 at 14:19 GMT. Other cryptocurrencies saw declines as well, with Ethereum down 12%. Solana and Cardano each dropped at least 17%, according to Coinbase.
"Margin positions being liquidated caused a wave of additional sell pressure, as assets that had been held as collateral were forcibly sold to pay for margin loans," Hayden Hughes, chief executive officer at Alpha Impact in Singapore, told Bloomberg.
The expert expects the cryptocurrency to take some time for a bottom to form and for confidence to return, before projecting any sort of bullishness.
Bitcoin's downfall from its all-time high of nearly $69,000 in November has erased some $600 billion from its market value, and more than $1 trillion has been reportedly lost from the aggregate crypto market. According to Bespoke Investment Group as quoted by the agency, this marks the second-largest-ever decline in dollar terms for both, while there have been much larger percentage drawdowns for both Bitcoin and the aggregate market.
The slump in both cryptocurrencies and stocks was caused by the latest move by the US Federal Reserve to tighten monetary policy at a faster pace than expected. In an effort to revive the economy, the Fed may increase key interest rates three times this year, according to Reuters polls.
The cryptocurrency market has also been rocked by China's crackdown on virtual currencies, as well as Russian moves of a similar nature. Last year, Beijing prohibited cryptocurrency mining in the Sichuan Valley, triggering an adverse impact on the market.
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Poland Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Poland Sun.
More InformationDUBLIN, Ireland: Egyptian authorities released Paul Murphy, TD, from the People Before Profit party after his second detention on June...
DUBLIN, Ireland: In a significant demonstration outside Leinster House in Dublin, hundreds of housing protesters voiced their frustration...
PARIS, France: The Paris Airshow kicked off on June 16, attracting attention with expected aircraft orders, but overshadowed by the...
BARCELONA/MADRID, Spain: With another record-breaking tourist season underway, thousands of residents across southern Europe marched...
DUBLIN, Ireland: Cork's northside and Dublin's north inner city have been ranked as the dirtiest areas in Ireland, according to the...
ZURICH, Switzerland: In a breakthrough that could reshape the future of sustainable materials, scientists at Empa's Cellulose and Wood...
WASHINGTON, DC - In a bid to defuse speculation, U.S. President Donald Trump says he will make his decision on whether to have the...
WASHINGTON, D.C.: A quiet shift inside the Trump administration has stalled a key diplomatic initiative aimed at pushing Russia toward...
NEW DELHI, India: Indian investigators are examining the black boxes from a Boeing 787 Dreamliner to determine the cause of a catastrophic...
BEIJING, China: Chinese civil servants are now facing stricter rules on dining together, with some local authorities limiting group...
DUBAI, U.A.E.: As violence escalates between Iran and Israel, Tehran is turning to its Gulf neighbors to help broker a ceasefire —...
LONDON, U.K.: On June 15, Britain named Blaise Metreweli as the first woman to lead the Secret Intelligence Service, commonly known...